in the matter of - uperc
TRANSCRIPT
Petition No. 1019/2015 & 1024/2015
BEFORE
THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION
LUCKNOW
Date of Order: 14 .01.201 6
PRESENT:
1. 1. 2. 3.
IN THE MATTER OF:
1. Petition No. 1019 of 2015 : Approval of Supplementary PPA of Shri Saurya Powertech Pvt Ltd dated 21 .01.2015 for 20 MW Solar Power .
2. Petition No. 1024 of 2015 : Shri Colonizers & Developers sought stay of
operation of UPNEDA letters dated 06.05.2015 and 09.06.2015 issued to petitioner for failing to commission 20 MW Solar Plant by 27.04.2015 and other conditions of PPA.
AND AND
1. Petition No. 1019 of 2015 UP Power Corporation Limited (Through its Chief Engineer PPA) 14th Floor, Shakti Bhawan Extension 14- Ashok Marg, Lucknow.
AND --------------- Petitioner
M/s Saurya Powertech Pvt. Ltd., A-49, Sector 63, Noida- 201301
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Noida- 201301
--------------- Respondents
2. Petition No. 1024 of 2015
Shri Colonizers & Developers Pvt. Ltd., S-14, IInd Floor, Jai Hind Commercial Center, Lal Bagh, Lucknow.
--------------- Petitioner
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AND
Director, Uttar Pradesh New and Renewable Energy Development Agency, Vibhuti Khand, Gomti Nagar, Lucknow.
Chief Engineer, Power Purchase Agreement Directorate, U.P. Power Corporation Limited, U.P. Power Corporation Limited, Shakti Bhawan, Ashok Marg, Lucknow.
Managing Director, U.P. Power Transmission Corporation Limited, Shakti Bhawan, Ashok Marg Lucknow.
--------------- Respondents
Following were presents
1. Sri V.P. Srivastava, CE (PPA)
2. Sri S.K. Sinha , SE, (PPA)
3. Sri Rajeev Srivastava, Advocate, UPPCL
4. Smt. Namrata Kalra , UPNEDA 4. Smt. Namrata Kalra , UPNEDA
5. Sri Nishant Shukla, Advocate, UPNEDA
ORDER
(Date of Hearing 22.12.2015)
1. In the matter of petition no. 1019/2015 : M/s Shri Colonizers &
Developers entered into PPA for 20 MW solar power. Subsequently, Shri
Colonizer wants to transfer this PPA to its wholly owned subsidiary Shri
Saurya Powertech Pvt Ltd. on same terms and conditions. The
Supplementary PPA has been signed on 21.03.2015 and the same is now put
before the Commiss ion for its approval.
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2. In the matter of petition no. 10 24 /2015 : The PPA for 20 MW solar power is
signed by Shri Colonizers on 28.03.2014, which has provision that plant shall be
commissioned within 13 months from the date of signing of PPA i.e. 27.04.2 015.
Under the provision 4.8.1B(b) of the PPA UPNEDA, the Bid Process Coordinator
(BPC) for the solar power, imposed penalty on Shri Colonizer vide letters dated
06.05.2015 and 09.06.2015 for non-commissioning of plant within stipulated time
and failin g to meet condition subsequent to signing of PPA . Further, it was also
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asserted by UPNEDA that were penalty not paid within a week the Contract
Performance Guarantee shall be invoked and PPA shall be cancelled. The
Petitioner in this case has approached th e Commission for stay of above orders
citing various grounds execute
the project.
3. In last hearing, t he Commission directed M/s Shri Colonizers & Developers to
submit up to date details of financial investments don e in respect of land submit up to date details of financial investments don e in respect of land
acquisition and land acquired by with a copy to UPNEDA and UPPCL. For this
purpose specific mutation of the land or registration of the land transferred in
favour of petitioner only will be considered. UPNEDA and UPPCL were directed
to give their comments on these submissions within 10 days of receipt of
submissions from the petitioner .
4. M/s Shri
Colonizers & Developers made their written submission in the hearing only. M/s
Shri Colonizers & Developers maintained in submission that in compliance with
the directive they standby contents of Petition no. 1024/2015 and have nothing
to add to it. They further submitted that they have made considerable financial
investment and expend ed significant time and efforts in procuring and acquiring
land for the project. They also submitted that they are whole heartedly and
utmost sympathetic consideration in the matter.
5. M/s Shri Colonizers & Developers submitt ed that against the total requirement
of land of 114.96 acres they have acquired 11 acres of land and for the rest
they have entered into MoUs/ agreements for acquiring it. Further, they
submitted that as of date they have invested approx. Rs. 20 crores that
includes Rs. 2.35 crores towards acquiring land, payment of BG fee and
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includes Rs. 2.35 crores towards acquiring land, payment of BG fee and
conducting viability study, Rs. 2 crores (approx.) towards consideration in
executing MoU for land acquisition and Rs. 15 crores as BG for th e project.
6. M/s Shri Colonizers & Developers argued that since state officials were busy in
recently held Panchayat elections thus the process of land acquisitions was
slowed down and this was beyond their control and requested for 3 months
more to complete the land acquisition.
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7. Neither in the hearing nor during perusal of the submission made by M/s Shri
Colonizers & Developers update regarding the grid -connectivity were referred
to whereas in last hearing it was submitted by M/s Shri Colonizers &
Developers that negotiation with concerned owners of land adjacent to Turra
132 kv sub -station was in advance d stage.
8. UPNEDA maintained that as on date none of the obligations under PPA are
fulfilled and as per provisions of PPA for achieving commercial operation fulfilled and as per provisions of PPA for achieving commercial operation
extension beyond 6 months cannot be granted and even that time line has
elapsed on 27.10.2015 and therefore no extension may be granted by the
Commission.
9. In the hearing parties acknowledged the fact that with advancement in solar
technology capital cost of solar projects is rec eding . It seems that one of the
reservations of UPNEDA is also on this account as higher cost of power is
eventually passed on to consumers. The Commission enquired from both the
parties how would they like to address this concern and relook into the price of
power . Both the parties agreed to revisit this issue and also revisit the
modalities of the agreement and then come up to the Commission with an
agreed proposal. One has to keep in mind the tariff benchmarked for similar
projects
time from date of hearing to both sides to discuss the matter and come to the
Commission with an agreed solution.
10. Further, the Commission directs the developer to submit its roadmap for
finan cial closure, land acquisi tion and connectivity agreement to vindicate its
appeal for time extension to complete the project.
11. The Commission adjourned the hearing .
12. The next date of hearing shall be fixed subsequent to submissions as above.
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12. The next date of hearing shall be fixed subsequent to submissions as above.
(S.K. Agarwal) (Indu Bhushan Pandey) (Desh Deepak Verma)
Member Member Chair man
Place: Lucknow
Dated: 14.01.2016
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